When quantity discounts are allowed, the cost-minimizing order quantity:

When quantity discounts are allowed, the cost-minimizing order quantity:



A) is always an EOQ quantity.
B) minimizes the sum of holding and ordering costs.
C) minimizes the unit purchase price.
D) may be a quantity below that at which one qualifies for that price.
E) minimizes the sum of holding, ordering, and product costs.


Answer: E


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